Do I have to disclose previous damage when I insure my boat?

A proposal form for boat insurance usually asks about previous claims, earlier insurers, policies refused or cancelled, and the condition of the hull and engine. These answers are how the insurer decides whether to take the risk and at what premium. Under UK consumer insurance law the duty is to take reasonable care not to make a misrepresentation in answer to the insurer's questions. Under German law, which applies to many continental policies, the rule is similar: you must disclose what you know and what the insurer has asked in writing.

What happens after a wrong answer depends on how it came about. A deliberate or reckless misrepresentation lets the insurer treat the policy as if it never existed. A careless one lets it act as it would have done with the right answer, for example add an exclusion, charge more or pay a proportion of the claim. An honest and reasonable answer cannot be held against you. A repaired grounding, a replaced engine or an old water ingress therefore belongs on the form whenever the form asks about it.

What to do: before you fill in the proposal, collect invoices, survey reports and photos of earlier repairs and note the date, the cause and the yard. Answer every question in full, and add a line of explanation where an answer could be read two ways. A properly repaired hull with a yard invoice is rarely a reason to refuse cover, while a hidden one can cost you the whole claim later. If you remember something after the policy starts, tell the insurer in writing straight away.

Worth remembering

Answer every question, keep the repair invoices.